Sime Darby Property to launch RM440m projects in Serenia City next year

Phase A9 and Phase A10 will offer 324 units and 408 units of double-storey link houses respectively


SIME Darby Property Bhd plans to launch RM440 million worth of residential projects at Serenia City in Sepang next year.

The first project, Phase A9, will consist of 324 units of double-storey link houses planned to be launched in August 2020.

Phase A10, which will offer 408 units of double-storey link houses, is targeted to be launched by the end of next year.

Sime Darby Property GM for business unit 2 Mohd Idris Abdullah (picture) said Serenia City township has achieved sales target of RM300 million for the year.

“We have already reached our target for this year, so we will not be launching any new project.

“For next year, we are trying to push our limits to the next level by selling 700 units as the market absorption for this area is around 500 units a year,” he told media at a briefing in Sepang yesterday.

Most projects in the township have been fully sold out, excluding the Serenia Arina Phase 2 which was launched last month.

Mohd Idris expects Serenia Arina Phase 2 to be sold out by the end of September as the project has recorded a 80% take-up rate to date.

He added that the Selangor state government has given approval to Sime Darby Property to build landed units of Rumah Selangorku in Serenia City.

“Rumah Selangorku is usually for high-rise properties. But when we studied the market in Serenia City, there is no market absorption for Rumah Selangorku’s high-rise homes. We took the initiative and proved to the state government on the study, and the authority has given us the approval to do landed houses,” he explained.

For the Phase 1 of the residential homes, Sime Darby Property has received approval to build 630 units of townhouses and terrace houses.

If all goes well, the company plans to start construction of such houses next year, Mohd Idris said.

The 959.11ha Serenia City township is expected to be fully completed by 2035 with RM8.22 billion of the remaining gross development value (GDV) to be built from the total RM9.32 billion GDV township.

Sime Darby Property has posted improved financial results for the second quarter ended June 30, 2019 (2Q19), with its net profit rising more than fourfold to RM205.26 million from RM46.57 million in the previous corresponding period.

Apart from higher contribution via the property development segment, the earnings growth was supported by lower losses from its leisure and hospitality segment.

A gain of RM81.1 million was made from the disposal of a parcel of land in Selarong, Kedah, as part of the group’s non-core asset monetisation plan.

Its revenue rose 40.26% year-on-year (YoY) to RM865.9 million in 2Q18. As such, the company declared a first interim single-tier dividend of one sen to be paid on Oct 22, 2019.